hello guys today we're going do a video about trading psychology
the reason why trading psychology is important is because trading is a strenous
activity
when money is on the line, its hard to remain calm and think clearly
so you need to follow some basic rules and principles when trading
the main reason why traders fall short when trading
is because of greed and fear those emotions are very difficult to
handle the main problems greed is that people usually set
unrealistic goals for example people want to become millionaires
in a week or a month another problem with greed is that people usually
traders usualy think in specific amounts
so they feel that they need to make a specific amount of money per day
and they don't stop until they make it sometimes they start losing
and because they want to make this specific amount they keep on losing
the third problem with greed is that most traders don't accept that in order to
make money in this market you also have to lose some trades
no successful trader wins one hundred percent of the time
the main mistake that people make
in this regard is when for example they go long in the market
and the market starts falling instead of closing their position and accepting
that they were wrong
they start increasing their position's volume. That results in very high risk and
often the kill half of their account this way let's talk about fear
it's normal to respect the market because the market is fairly unpredictable
but you mustn't be afraid of executing your game plan
you must be afraid after entering the position that the market will go against
you
and
you do some common mistake like lowering your take profit
and never let it hit so you constantly getting less profits
than you should be. Another problem with fear is that traders are constantly
second-guessing themselves so after
after they enter their position they're always think that something is going to
go wrong
and before you enter the position you're always over analyzing because you're
afraid
no you need to just stick to your game plan and execute it. The main tools
you have against the emotions oh greed and fear
is discipline and a training system many books have been written on
discipline and training systems but in order to make it easier for you we're
going to cover some basic principles
of discipline and and trading systems
so let's talk about dicipline first. The first rule about dicipline is that
you have to accept that
you cannot win all the time like we said before whenever you're losing however is
only because of the market cTrader is an NDD STP platform and if we allow no
price injections, no broker manipulation,
no stop loss hunting, none of this sort. The second
the second rule is that, like we said before
don't add to your losing position unless it's a part of your system
don't see that the market is going against your and you keep on increasing
your volume
cTrader accepts hedging
so when you see that the market is going against you sometimes
it's a better strategy to start raining on the other way
instead of adding to your losing positions. Third rule about discipline is
that trading should not
overexcite you. It's normal to feel excited about making money it's
normal to be
something that motivates you to become better but you should not feel any gold
rush for any clouded thoughts or
not be able to think clearly, which brings us to the fourth rule
when you're training you need to think clearly you need to remain calm
you need to be focused don't do
technical analysis that is over complicated and you have what we call
analysis paralysis
don't look look at more information than you can handle, don't trade more symbols that
you can handle don't trade more time frames are you can handle
stick to whatever you're sure that you can handle in a calm and focused
way
the fifth rule is that you're not supposed to mess with your trading
decisions
after you enter your trade and don't be constantly second guessing yourself
accept that the market is sometimes unpredictable and try to
follow the market and follow your game plan. let's go to cTrader now
I'm gonna show you what I mean and when you're supposed to stick to the rules
if I trade long here because for example I'm
I think that there's some point of resistance, I'm going to set my stop loss
and take profit using chart trading
at technical levels, below the previous
low of the swing and on a take profit level that I am confortable
I will reach and I will not mess with my stop loss
and take profit the next rule is that you're supposed to move on
after losing a trade if you feel that you can not stop thinking about a
trade that you lost
you need to stop trading you need to be concentrated and
clear headed when trading so you don't need to cover anything
just let it go and move on. The next tool at your disposal
is your training system we already did a video about trading systems so you can go
and check that out
I wanna show you cTrader how do you maintain your
disciplining your trading system. Feature we have in cTrader is
cBots, now you can run your robots in cTrader what you can do even if
you're a manual trader is program your entry and exit rules
in a robot and attach them to your chart. Now when you want to enter the market
you can just press play
and you will enter with your pre determined rules. Next feature I want to
show you in this regard is
quicktrade excecution settings. You can set your quicktrade execution settings
for every time you enter the market for your stop loss in your take profit
and this way you will maintain your discipline
and after you set them up you're not going to mess with them again
you see they are already pre set
the final feature is advanced take profit
advanced protection this way
you can set multiple take profit take profit levels for your positions
or you can set a trailing stop or you can set a break-even point
so after you enter your position you can set up whatever you want
you can click apply and you will maintain your discipline in your trading system
a good rule about
your trading system is try not to work on your trading system while you're
trading
when your trading you're executing our strategy your don't want to
be second-guessing yourself or be second guessing your trading system when you stop
trading and you are calm or on the weekends you can work on your trading
systems
try to keep a one to one risk to reward ratio
as we talked in the previous viudeo, The final rule about trading systms is that
you have to trade more
the more you trade the less significant its trade becomes
so when your trading you don't feel anxious about the particular trade
or what's going to happen
you remain calm and you don't really care about the specific trade , it's
all the trades that matter. So this concludes our presentation about trading
psychology
on the next video we are going to talk about advanced risk management
so thanks for watching
the No